Woolworth leaves 30,000 people fearing for their jobs

Shares in Woolworth, whose stock has fallen more than 90 percent since the beginning of the year, were suspended this morning (26Nov08) on the stock market as bosses desperately tries to come up with a rescue plan.

The giant is in desperate need of cash injections as its struggling to pay wages. Due to this, the company is for sale for a nominal value of £1 but comes with 385 million in debts.

It was reported by the sunday times that Hilco, a restructuring firm, offered one pound and a percentage of the company's debt for the stores. Property investor Ardeshir Naghshineh, one of the company's biggest shareholder, opposes that plan and wants to keep the stores.

London's Times newspaper reported the retailer may collapse as soon as today if managers can't find money for this month's wages.

"Its looking like the end for Woolies as we've known it, but I'm sure some sort of deal will get hammered out,'' Andrew Wade, an analyst at Numis Securities, said in an interview. "It's looking like equity holders won't end up with much.''